ASSETS AND LIABILITIES HELD FOR SALE

In 2017, the Company started exploring strategic options for non-core emission product lines in the Engine segment and launched an active program to locate a buyer and initiated all other actions required to complete the plan to sell and exit the non-core pipe and thermostat product lines. The Company determined that the assets and liabilities of the non-core emission product lines met the held for sale criteria as of December 31, 2017. The fair value of the assets and liabilities, less costs to sell, was determined to be less than the carrying value, therefore, the Company recorded an asset impairment expense of $71.0 million in Other expense, net to adjust the net book value of this business to its fair value less cost to sell in the year ended December 31, 2017. During 2018, the Company continued its marketing efforts with interested parties and engaged in active discussions with these parties. In December 2018, after finalizing negotiations regarding various aspects of the sale, the Company entered into a definitive agreement to sell its thermostat product lines for approximately $28 million subject to customary adjustments. Completion of the sale is expected in the first quarter of 2019, subject to satisfaction of customary closing conditions. The fair value of the assets and liabilities based on anticipated proceeds upon sale, less costs to sell of $3.5 million, was determined to be less than the carrying value, therefore, the Company recorded an additional asset impairment expense of $25.6 million in the year ended December 31,2018 in Other expense, net to adjust the net book value of this business to its fair value less cost to sell. As of December 31, 2018 and December 31, 2017, assets of $47.0 million and $67.3 million, including allocated goodwill of $7.0 million and $7.3 million, and liabilities of $23.1 million and $29.5 million, respectively, were reclassified as held for sale on the Consolidated Balance Sheets. The business did not meet the criteria to be classified as a discontinued operation.

The assets and liabilities classified as held for sale are as follows:



	December 31,			December 31,
(millions of dollars)	2018			2017
Receivables, net	$	14.8		$	21.0
Inventories, net	41.6			30.4
Prepayments and other current assets	11.9			10.3
Property, plant and equipment, net	44.9			47.7
Goodwill	7.0			7.3
Other intangible assets, net	20.2			21.1
Other assets	0.1			0.5
Impairment of carrying value	(93.5		)	(71.0		)
Total assets held for sale	$	47.0		$	67.3

Accounts payable and accrued expenses	$	18.3		$	24.6
Other liabilities	4.8			4.9
Total liabilities held for sale	$	23.1		$	29.5